After 12 years as COO, Lubomir Kaneti leaves FXDD for senior position at Cantor Exchange
“Good habits lead to good results” – Lubomir Kaneti
Lubomir Kaneti is a class act. A bastion of unflappable corporate poise and composure, his twelve years at FXDD in New York as Chief Operating Officer having been served with aplomb during times which ranged from halcyon days to difficult times.
Today marks the end of an era as Mr. Kaneti has officially concluded his tenure at FXDD, moving to Cantor Exchange where he will assume the position of Senior Managing Director, in a Chief Operating Officer’s capacity, responsible for corporate strategy, risk mitigation and regulatory compliance for the US and EU.
During his twelve years at FXDD, Mr. Kaneti led the operational aspect of the company, beginning in 2004 as Vice President of Operations, before being promoted to Chief Operating Officer in June 2007.
Mr. Kaneti’s leadership spanned across a period during which FXDD became a major force in China.
Recent research conducted by FinanceFeeds across China demonstrated that from Shenzhen to Zhengzhou, and Guangdong to Shanghai, FXDD was one of three large brokers (the others being FXCM and Saxo Bank) that such firms refer business to, especially in the critically important second tier development towns with introducing brokers that manage customer accounts and trade between 60,000 and 90,000 lots per month.
During a meeting at FXDD’s headquarters in New York last year, Mr Kaneti explained the firm’s success in the Far East.
The IB model is still the best Through a great deal of research and meetings with IBs in China, FinanceFeeds clearly understands the need for brokers to which said IBs are referring business engage on a personal basis with the IBs by spending time with them, at their offices and listening to their requirements.
Whilst Mr. Kaneti firmly agrees with this, he considers there to be far more to the art of ensuring that a smooth and long term partnership can be fostered. “It is not just a case of traveling to see IBs” he said.
“The IBs have to promote their brand whilst adhering to the very stringent rules in China. They may push the limit here & there and we will call them if we see something not right to ensure that we can help them operate within the appropriate limits across the entire chain. Overall we have been very good to them and that is critical. In China, companies appreciate this kind of very detailed service.”
Entrepreneurship is paramount in China
Mr. Kaneti has a very concise understanding of the modus operandi of Chinese IBs. “The Chinese IBs are entrepreneurs in their own right, and respect companies that let them focus on building their business. They need to focus on building their network and developing more business, whilst the broker has to be reliable in delivering a comprehensive brokerage service that does not impede the IB’s goals and allows them to concentrate on their business.”
“You don’t have to be the latest and greatest, but you have to be serious and provide top quality service, and build trust. The IBs are very keen and actively looking to sell a specific premium brand to their customers, therefore it becomes easier to do so as it becomes a well known brand in China if the company provides good quality customer service.”
In terms of gaining trust, Mr. Kaneti considers it to be rather like growing a traditional British garden. “The similarity is that after several years of cultivation and attention, an immaculate lawn will result, but after the lawn has been completed, you have to go back over the parts that have already grown and ensure that no weeds have appeared, and then plant some flowers to show additional attention to detail.”
Good habits lead to good results – Lubomir Kaneti
“Good habits lead to good results” said Mr. Kaneti. “Legendary business philosopher Peter Drucker once said that ‘culture eats strategy for breakfast’. This is very telling. For example, if the culture within a brokerage is to is churn and burn through customers and take no prisoners, then customers will treat the brand the very same way. If you focus on service and customer satisfaction and you do it properly then you get long term results and lots of referrals.”
Why do Chinese IBs worry so much about sending client funds abroad?
Mr. Kaneti remenisced on some of his inaugural ventures into the Chinese market which paved the way for today’s business success there. “On some of the early trips to China that I went on, there were, for example 300 people waiting to take notes on a seminar which is great, but then they ask what is the risk of their clients losing the funds and if their money will never be seen again, even for small deposits.”
This is very understandable, as the Chinese government has jurisdiction only over its domestic enterprises, and is not responsible for any loss of funds that have been sent abroad, plus Chinese investors cannot instruct a lawyer to recover anything from abroad.
Mr. Kaneti always addressed this matter by explaining that at that time the operation was not regulated, funds were not segregated and if they did not want to take the risk, then it is best not to send anything and not to trade.
This method demonstrated to the clients that the company was not out to take their money, and has their best interests in mind. According to Mr. Kaneti, the customers and IBs in China respect honesty, and straight forward answers and therefore they would rather go ahead and trade with a company which demonstrates that.
In taking his international experience within one of the most prominent OTC derivatives firms that enjoyed a shining few years under his leadership, Mr. Kaneti moves into the exchange-listed derivatives sector and will be based in New York at Cantor Exchange’s imposing 499 Park Avenue premises.
New products are continuing to be part of Cantor Exchange’s remit, an example being the 2016 launch of Named Storm Landing Contracts in a joint effort with AccuWeather. These contracts allow investors to purchase financial protection if they anticipate that a storm will make landfall at a
particular location along the eastern seaboard of the United States, a modern take on the weather futures contracts that were offered by CME Group in the 1970s and 1980s. The Cantor Exchange intends to launch other weather related contracts in the near future.
Educated at University of National and World Economy, Sofia, Bulgaria, Mr Kaneti holds a Master of Science degree in Accounting and Auditing from which he graduated in 1997.